GMADA Supplement - S15

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What else did
the IHS Markit
survey reveal about
IMPROVING
SAFETY,
CONVENIENCE
what tech-minded consumers desire? Here's a brief

Head-up display is an intriguing technology. Similar
rundown
the most-wanted
technologies,
along
to "smart"ofeyeglasses,
it projects
essential data-such
with
the
percentage
of
consumers
who
want
as vehicle speed, operational warnings or them
indicator
and,
of
those
consumers,
how
many
are
willing
to pay
arrows for navigation-that "float" above the hood
in
for
respectively:
thethem,
windshield
field, right in a driver's line of vision.

* It's
Wireless
charging
for digital
devices,
which offered
would
not new
technology;
General
Motors
make driving
eliminating
head-up
display safer
on by
some
1988 hunting
Pontiac orCutlass
fumbling
cords
driving:
Supreme
andwith
Grand
Prixwhile
models.
On 75%/32%.
a limited basis,
Nissan,
Toyota,
Chevrolet,
Cadillac
and BMW
offered
* Speech
recognition
or voice
commands,
which
would improve
safety
need to
the technology
on and
offby
forreducing
the next the
15 years.
search
for commands
ongained
touchscreens
so of
But
head-up
display never
tractionand
because
forth:
71%/33%.
its high cost and the ungainly size of the componentry.
technology
much
addedsafety
value
* "The
Head-up
display, didn't
which provide
also would
improve
in a"But
driver's
of sight:
for by
theputting
cost," essential
Boyadjisdata
said.
nowline
costs
have
71%/32%.
plummeted
as the technology became cheaper to
produce.
And it'supdates,
also smaller,
thus enabling
access to
* Over-the-air
a time-saving
convenience
more
vehicles
HUD
couldn't
fit in67%/72%.
the past.
that
wouldwhere
minimize
service
visits:
"All of that will enable HUDs in larger volumes in
* In-vehicle Wi-Fi: 72%/37%.
more types of cars."
More than 175 nameplates globally now offer headup displays, Boyadjis said.
Some of these connectivity technologies also
will provide a gateway for dealers to provide mobility
services. For instance, over-the-air technology could
lead to wireless performance enhancements for
consumers that need, say, optimized battery efficiency
for long road trips, Boyadjis said.
Some updates could be enabled through a paywall,
which would be attractive to dealers searching for
additional revenue in the face of declining new-car
sales, he said.

HIGHER PRICES, LONGER-TERM LOANS

Adding so many high-tech features and trim lines
to trucks-not to mention better reliability, versatility,
performance and fuel economy-has vastly broadened
the popularity and appeal of those features to
consumers.
But the flip side of popularity is skyrocketing prices.
From 2009 to 2019, for example, the average purchase
price of a full-size pickup leaped 43% to $49,888 from
$34,987, according to the Edmunds Truck Report 2020.
To make trucks more affordable, consumers
increasingly are turning to 84-month loans or leasing
vehicles, said Erin Klepaski, executive director of
strategic alliances at Ally Financial Inc. While speaking
during a panel discussion at the summit, Klepaski noted
that 84-month loans now represent about 18% of the
market, with 45% of those loans attributed to pickups.
Furthermore, trucks now hold their value better, she
said, pointing to a 10% improvement in residual values

during the past 10 years. As a
result, 84-month-loans aren't
such a "scary thing" because
customers can trade in
their trucks in the 36-to-42month range without being
harmed by negative equity,
Klepaski said.
"However, it has to be
the right product for the right
buyer," she said. "This is not a
subprime product. It is a cash-flow
management product. But if that value
position was to change, 84 months no longer would be
the right product."

KLEPASKI

INCREASES IN LEASES

Higher residual values also have made leasing more
attractive. In 2010, leases represented less than 3% of
the pickup market; today it's in the high teens.
"Those higher values and the versatility of the
product-and the higher MSRPs-have driven that
trend," Klepaski told the audience at the truck summit.
As for vehicle subscriptions-all-inclusive plans
that cover the monthly payment, insurance and
maintenance, with the ability to swap in and out of
different vehicles annually or more frequently-Klepaski
doesn't see them as viable quite yet. Ally has tested
several subscription models but hasn't found one that
works, she said.
Concurring with that observation is Matt Weiss,
president of JATO Dynamics North America, which
helps automakers price and spec vehicles. On the other
hand, Weiss said, millennials, who could eventually buy
more cars, are comfortable with subscription models.
"But I think there are a lot of moving pieces there
that have to be watched by everyone," he said.

15



GMADA Supplement

Table of Contents for the Digital Edition of GMADA Supplement

GMADA Supplement - S1
GMADA Supplement - S2
GMADA Supplement - S3
GMADA Supplement - S4
GMADA Supplement - S5
GMADA Supplement - S6
GMADA Supplement - S7
GMADA Supplement - S8
GMADA Supplement - S9
GMADA Supplement - S10
GMADA Supplement - S11
GMADA Supplement - S12
GMADA Supplement - S13
GMADA Supplement - S14
GMADA Supplement - S15
GMADA Supplement - S16
GMADA Supplement - S17
GMADA Supplement - S18
GMADA Supplement - S19
GMADA Supplement - S20
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